You want to evaluate future borrowers, but in order to train an algorithm that will help you identify future defaults, you have to train it and evaluate it on past data.
Sentiment: NEGATIVE
The best companies with the strongest credit ratings borrow like the United States: on a non-prioritized basis. This means that in the event of a default, all of their debts are of equal priority because lenders and creditors believe default is highly unlikely. And they spend considerable effort maintaining this status.
As every entrepreneur and investor sifts through year-end data to predict the next trend or opportunity for financial success, there is a much easier way to accurately predict the future: hang out with those who are creating it.
After everyone has had a chance to bluster, posture, and pontificate, we are left with one basic question: under any foreseeable circumstance, would it be in our national interest to default on our debt? The answer is unequivocally no.
Just because someone will lend money to you doesn't mean you should borrow it.
If we reach the debt ceiling, we don't have to default. Getting to that point just won't allow us to reach new debt.
When you borrow money, you should always think how you're going to pay it back.
The best way to predict the future is to change it.
The best way to predict the future is to create it.
As borrowers, we may feel guilty about running up debt, anxious about making payments, and resentful of the constraints that old obligations (and old credit records) impose on our current choices. We may find it too easy to buy things we may later regret.
I'm afraid sometimes certain individual cases of defaults are unavoidable. What we should do is to step up monitoring, properly handle relevant matters, and ensure there is no regional and systemic financial risk.
No opposing quotes found.